Profit margin calculator
See how much of every sale you keep. Adjust the values to explore your numbers.
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How to calculate profit margin
Gross margin measures profit as a share of revenue. It excludes overheads, taxes and other expenses unless included in your costs.
A worked example
With cost of 60, revenue of 100, profit margin is 40%. Change the example above to match your situation.
Enter amounts in the same currency and time period. Results display up to two decimal places; calculations use unrounded values. These estimates are for planning and education.
Common questions
What is the difference between margin and markup?
Margin divides profit by revenue. Markup divides the same profit by cost. A cost of 60 and revenue of 100 produce a 40% margin and a 66.67% markup.
Is this gross profit or net profit?
The calculator subtracts only the cost you enter. To estimate gross margin, enter your cost of goods sold. Overheads, tax and other expenses are excluded unless you include them in that cost.